Focus on 1315 Resistance Point

1 month USD/KRW closed in NY just above 1315, right on recent highs, but has seen early selling interest as onshore markets opened. The pair is back now around 1312.60. Spot is just above 1313, around +0.60% above yesterday's closing levels. The move higher in USD/KRW is line with the broader USD rebound, as US yields rebounded sharply.

• The focus today will be on whether the pair can break meaningfully above the 1315 level. On the 21st of July, 22nd, and twice on the 27th, the 1 month NDF couldn't sustain a break above this level, hence it remains somewhat of a near term resistance point.
• Broader USD sentiment is positive though, with yen weaker by 0.50% so far today.
• In the equity space, the Kospi is a touch higher in early trade today (+0.15%). The Kosdaq is doing better, at +0.50%. Offshore investors added $150mn of local shares yesterday. The lead from offshore equities was weaker overnight but only modestly.
• Earlier, South Korea FX reserves edged up to $438.61 for July, ending a 4 month run of declines. There is no other data scheduled for release today.
• The FT also reported that Samsung and SK Hynix will rethink their China exposure following the passing of the US Chips act.